The environmental industry in transitional China: barriers and opportunities between state and market

The environmental industry has been cited as a crucial industrial sector that developed parallel to the increasing focus on ecological and environmental issues in the modernisation process. Notwithstanding its rapid growth in recent years, China's environmental industry is still immature in comparison with that of developed countries. A review of the development of China's environmental industry points at several fundamental constraints. Both at national and regional levels, barriers relate to the demand side and the supply side of environmental industry, linked to rapid economic and social transitions. In addition, political constraints for innovation in environmental industry relate to the underlying administrative hierarchy and governmental regulation.

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